Interim Financial Report at 30 September 2017

of the Enav Group

Contents

Main operating data 3

Introduction 4
Market and air traffic trends 5
Effects of seasonality 10
Group economic and financial performance 10
Declaration of the Manager responsible for financial reporting 23

Enav Group - Interim Financial Report at 30 September 2017 2

Main operating data

Financial data 3rd quarter 2017 3rd quarter 2016 Variations %

Total revenues 672,988 662,105 10,883 1.6%
EBITDA 230,462 208,019 22,443 10.8%
EBITDA margin 34.2% 31.4% 2.8% 9.0%
EBIT 129,010 107,459 21,551 20.1%
EBIT margin 19.2% 16.2% 2.9% 18.1%
Group result for the period 89,639 70,436 19,203 27.3%
Value in thousands of Euro

Equity and financial data 31.03.2017 31.12.2016 Variations %

Net invested capital 1,266,575 1,219,947 46,628 3.8%
Shareholders' Equity 1,109,200 1,119,826 (10,626) -0.9%
Net financial indebtedness 157,375 100,121 57,254 57.2%
Value in thousands of Euro

Other indicators 3rd quarter 2017 3rd quarter 2016 Variations %

En route service units 6,709,301 6,492,564 216,737 3.3%
Terminal service unit 1st charging zone 166,856 173,569 (6,713) -3.9%
Terminal service unit 2nd charging zone 238,846 228,953 9,893 4.3%
Terminal service unit 3rd charging zone 316,188 301,731 14,457 4.8%
Free cash flow (value in thousands of Euro) 38,507 86,807 (48,300) -55.6%
Headcount at the end of period 4,251 4,327 (76) -1.8%

Enav Group - Interim Financial Report at 30 September 2017 3

Introduction
This document reports and comments on the reclassified consolidated income statement and the statement
of financial position, net financial indebtedness and statement of cash flows of the Enav Group at 30
September 2017, compared with the figures for the corresponding period of the previous year for the data
included in the income statement and statement of cash flows and with the corresponding figures at 31
December 2016 for the statement of financial position, shown in thousands of Euros.
The consolidated financial statements were prepared in accordance with the measurement criteria
established by the International Financial Reporting Standards (IFRS) issued by the International Accounting
Standards Board (IASB) and endorsed by the European Commission and are substantially consistent with the
criteria used to prepare the consolidated financial statements for the year ended at 31 December 2016, as
the amendments to the existing standards which came into force on 1 January 2017 have not affected the
consolidated data.
With the introduction of the regulatory amendment launched in February 2016 by the transposition (through
Legislative Decree no. 25 of 15 February 2016) of the Transparency II Directive (which repealed the obligation
to publish interim financial reports) and subsequent Consob Resolution no. 19770 of 26 October 2016, the
Issuers' Regulations of Consob were amended by the introduction of the new Article 82-ter which allows
listed companies to to choose whether or not to publish interim information in addition to the annual and
half-yearly financial statements, applicable starting from 2 January 2017. As announced to the market on 30
January 2017, Enav has voluntarily chosen to publish quarterly financial information as at 31 March and 30
September in order to take account of the information requirements of its stakeholders.
The Interim Financial Report at 30 September 2017 does not represent an interim financial statements
prepared in accordance with international accounting standard IAS 34, and has not been audited by the
independent auditors.
The publication of this Interim Financial Report was authorised by the Board of Directors on 13 November
2017.
The consolidation principles used to prepare the Interim Financial Report as at 30 September 2017 conform
to those used to prepare the Consolidated Financial Statements at 31 December 2016, approved on 16 March
2017 and available on the website www.enav.it at the following address:
https://www.enav.it/sites/public/en/InvestorRelations/Financial-Statements-and-Reports.html
The scope of consolidation as at 30 September 2017 is the same as at 31 December 2016.

Enav Group - Interim Financial Report at 30 September 2017 4

Market and air traffic trends
Air traffic control activities in the countries of the Eurocontrol area in the period January - September 2017
recorded a significant increase in traffic in terms of en-route service units (*) compared with the same period
in 2016, with Eurocontrol area countries recording a result up 6.3%.
Among the major European providers, there were widespread increases in en-route service units, including,
in particular 8.8% for the Great Britain, 6.6% for Spain, 6.2% for Germany and 5.3% for France.
In this context of growth in en-route air traffic, the result recorded in Italy was also positive, thanks, above
all, to the growth recorded between April and September, with an increase in Service Units (SUs) of 3.3%
compared with the corresponding period of the previous year.

Total route traffic Variations

3rd quarter 2017 3rd quarter 2016
service units (**) no. %

France 16,161,120 15,341,987 819,133 5.3%

Germany 10,981,144 10,337,348 643,796 6.2%
Great Britain 9,020,402 8,287,965 732,437 8.8%
Spain 8,017,789 7,519,382 498,407 6.6%
Italy (***) 6,706,828 6,489,598 217,230 3.3%
EUROCONTROL 108,540,702 102,150,821 6,389,881 6.3%

(*) traffic overflying Italian air space, with or without stopover;

(**) service unit is the unit of measurement used by Eurocontrol to calculate the value of the service provided, obtained
by combining two elements: aircraft weight at take-off and distance travelled;
(***) excluding exempt traffic not reported to Eurocontrol.

En-route traffic
En-route traffic in Italy for the third quarter of 2017 shows an increase of 3.3% in the service units reported
by Eurocontrol (the same value if the remaining category Exempt not reported to Eurocontrol is included) and
an increase in the number of managed flights of 2.3% (+0.9% if the residual category Exempt not reported to
Eurocontrol is included).
The positive trend in traffic recorded in the third quarter of 2017 enabled the volume of service units
recorded in Italy to rise further. In effect, the growth recorded in the first half of 2017 stood at +2.4% plus
the good performance recorded in the summer season (+4.6% between July and September) leading to a
profit of +3.3%, with positive results both in terms of service units and flights billed contributed by each traffic
component. Specifically, note the good performance of service units in September recorded a 6.7% increase.
In this regard, note the positive performance of service units despite the incomplete reopening of Libyan
airspace and the effects associated with the organisational and operational restructuring of Alitalia. On the
other hand, the positive effects related to the implementation by Enav of the Free Route project mitigated
Enav Group - Interim Financial Report at 30 September 2017 5
these circumstances. This innovation allows all aircraft overflying at an altitude of more than 11,000 metres,
irrespective of whether they land or take off at Italian airports, to pass through domestic airspace on a direct
route without having to rely on network crossing points. This enables airline companies in transit in domestic
airspace to plan the shortest routes, without any constraints, with savings in fuel and operating costs, in full
compliance with the highest safety levels.

Traffic en-route Variations

3rd quarter 2017 3rd quarter 2016
(Number of flights) no. %
Domestic 221,800 225,050 (3,250) -1.4%
International 720,239 694,415 25,824 3.7%
Overflight 451,875 438,796 13,079 3.0%
Paying total 1,393,914 1,358,261 35,653 2.6%
Military 25,741 26,300 (559) -2.1%
Other exempt 13,539 16,478 (2,939) -17.8%
Total exempt 39,280 42,778 (3,498) -8.2%
Total reported by Eurocontrol 1,433,194 1,401,039 32,155 2.3%
Exempt not reported to Eurocontrol 17,322 37,095 (19,773) -53.3%
Total 1,450,516 1,438,134 12,382 0.9%

Traffic en-route Variations

3rd quarter 2017 3rd quarter 2016
(service units) no. %
Domestic 1,262,463 1,232,687 29,776 2.4%
International 2,790,276 2,726,484 63,792 2.3%
Overflight 2,542,442 2,420,346 122,096 5.0%
Paying total 6,595,181 6,379,517 215,664 3.4%
Military 101,163 100,914 249 0.2%
Other exempt 10,484 9,167 1,317 14.4%
Total exempt 111,647 110,081 1,566 1.4%
Total reported by Eurocontrol 6,706,828 6,489,598 217,230 3.3%
Exempt not reported to Eurocontrol 2,473 2,966 (493) -16.6%
Total 6,709,301 6,492,564 216,737 3.3%

In particular, en-route traffic was marked by:

 international commercial traffic, a category of flights with departure or arrival for a stopover located in
Italian territory, which, for the period in question, recorded positive results both in terms of service units
(SUs) up +2.3%, and in the number of assisted flights, up +3.7%. The lower growth in service units
compared to the number of assisted flights is primarily the result of a reduction in average distance flown
(-1.0%).
The development of international traffic, both at SU level and the number of flights, was generated by a
significant increase in flights in both the low mileage band (<350 Km in domestic airspace) with an

Enav Group - Interim Financial Report at 30 September 2017 6

 increase in SUs (+4.2%) and flights (+5.0%) and in the high mileage band (>700 Km in domestic airspace),
with growth in SUs (+8.0%) and flights (+9.6%).
As regards flights within Europe, we note the good performance of the connections between Italy and
rest of Europe (up +2.0% in SUs; up +3.2% in number of flights). These comprise the main part of the SUs
for international traffic, representing around 80% of the total SUs, and 87% of the total assisted flights.
The performance of connections between Italy and Africa was also positive with an increase in SUs of
+13.3% and an increase in assisted flights of +11.2% and in connections between Italy and America/Japan
(+4.0% SUs; +3.3% number of flights);
 commercial overflight traffic, a category of movements only over domestic airspace, which, in the third
quarter of 2017, recorded an increase in service units (+5.0%) and in the number of assisted flights
(+3.0%). In the period in question the average distance for each individual flight was up (+2.6%) as a result
of the significant development of longer distance flights (>800 Km over domestic airspace) which
generated an increase in SUs of +14.2% and in the number of assisted flights by +19% thanks to the
performance of intra-European connections and Europe-Africa connections.
With regard to the general analysis of departure/destination areas, note the good performance of
connections between European countries (+7.5% SUs; +3.4% no. of flights) which represent
approximately 70% of total overflight traffic. The figures for connections between Europe and Africa
(+6.0% SUs; +4.6% no. of flights) and connections between Europe and Asia (+1.0% SUs; +2.9% no. of
flights) were also positive.
 domestic commercial traffic recorded an increase of 2.4% in service units in the period in question in
spite of the 1.4% decrease in the number of assisted flights. These figures show a recovery for this type
of flights, after several years of dealing with competition from high-speed trains. The increase in long
distance flights (>700 Km in domestic airspace) contributed to the increase in SUs. Connections on the
Italian North-South axis were the driver behind the positive performance of the service units and number
of assisted flights which recorded figures of +5.3% and +5.0%, respectively.
 exempt traffic, divided into (i) exempt traffic reported by Eurocontrol, which recorded an increase of
+1.4% in SUs and a decrease of -8.2% in the number of assisted flights, with the latter figure being caused
mainly by a reduction in the military flights of member states, government flights, police flights and
circular flights; and (ii) exempt traffic not reported to Eurocontrol, with a slight effect on revenues, which
decreased by -16.6% in SUs and -53.3% in the number of assisted flights.
With regard to the traffic figures for companies operating in domestic airspace, low-cost companies are the
ones driving the domestic air traffic market the most, something which can also be observed in Europe,
according to the Eurocontrol figures. Among the largest companies operating in Italy, note the results
achieved by Ryanair (+9.6% SUs) and EasyJet (+6.8% SUs), which are the first and the third largest carriers,

Enav Group - Interim Financial Report at 30 September 2017 7

respectively, in terms of number of service units produced. The results of Aegean Airlines (+47.1% SUs), Wizz
Air (+22.3% SUs), Volotea (+10.0% SUs) and Eurowings (+40.0% SUs) are significant; only Vueling (-15.4%)
goes against this trend. All of the above-mentioned companies are in the top fifteen in terms of volumes of
service units produced. The operations of Middle Eastern companies like Turkish Airlines (-5.9% SUs) and
Emirates (-5.7% SUs) decreased highlighting a fall in air traffic on routes to and from the south east of the
Mediterranean. The operations of traditional companies like Lufthansa (+1.0% SUs) and Air France (+3.7%)
recovered, while those of Alitalia stayed negative (-4.7% SUs).
Lastly, a strong increase in cargo traffic was recorded in the period, especially involving domestic routes
which recorded a rise in service units of +49.6% and in the number of assisted flights by +39.3%.

Terminal traffic
Terminal traffic, which regards take-off and landing within 20 km of the runway, reported by Eurocontrol
performed well in the third quarter of 2017 both in terms of service units, which were up +2.7%, as well as
in terms of the number of assisted flights, which were up +1.9%.

Terminal traffic Variations

3rd quarter 2017 3rd quarter 2016
(Number of flights) no. %
Domestic
Chg. Zone 1 38,430 41,455 (3,025) -7.3%
Chg. Zone 2 44,705 43,782 923 2.1%
Chg. Zone 3 132,175 129,723 2,452 1.9%
Total domestic flights 215,310 214,960 350 0.2%
International
Chg. Zone 1 75,569 78,748 (3,179) -4.0%
Chg. Zone 2 135,567 128,685 6,882 5.3%
Chg. Zone 3 147,035 137,598 9,437 6.9%
Total international flights 358,171 345,031 13,140 3.8%
Paying total 573,481 559,991 13,490 2.4%
Exempt
Chg. Zone 1 102 69 33 47.8%
Chg. Zone 2 652 1,000 (348) -34.8%
Chg. Zone 3 15,314 17,429 (2,115) -12.1%
Total exempt flights 16,068 18,498 (2,430) -13.1%
Total reported by Eurocontrol 589,549 578,489 11,060 1.9%
Exempt not reported to Eurocontrol
Chg. Zone 1 1 2 (1) 0.0%
Chg. Zone 2 382 703 (321) -45.7%
Chg. Zone 3 8,533 24,774 (16,241) -65.6%
Tot. exempt flights not reported to Eurocontrol 8,916 25,479 (16,563) -65.0%
Total for chg Zone
Chg. Zone 1 114,102 120,274 (6,172) -5.1%
Chg. Zone 2 181,306 174,170 7,136 4.1%
Chg. Zone 3 303,057 309,524 (6,467) -2.1%
Total 598,465 603,968 (5,503) -0.9%

Enav Group - Interim Financial Report at 30 September 2017 8

Terminal traffic Variations
3rd quarter 2017 3rd quarter 2016
(service units) no. %
Domestic
Chg. Zone 1 46,710 50,288 (3,578) -7.1%
Chg. Zone 2 51,413 49,917 1,496 3.0%
Chg. Zone 3 145,630 141,488 4,142 2.9%
Total domestic SUs 243,753 241,693 2,060 0.9%
International
Chg. Zone 1 119,871 123,113 (3,242) -2.6%
Chg. Zone 2 187,072 178,544 8,528 4.8%
Chg. Zone 3 163,847 152,383 11,464 7.5%
Total international SUs 470,790 454,040 16,750 3.7%
Paying total 714,543 695,733 18,810 2.7%
Exempt
Chg. Zone 1 275 168 107 63.7%
Chg. Zone 2 328 433 (105) -24.2%
Chg. Zone 3 5,999 6,140 (141) -2.3%
Total SUs exempt 6,602 6,741 (139) -2.1%
Total reported by Eurocontrol 721,145 702,474 18,671 2.7%
Exempt not reported to Eurocontrol
Chg. Zone 1 0 0 0 0.0%
Chg. Zone 2 33 59 (26) -44.1%
Chg. Zone 3 712 1,720 (1,008) -58.6%
Total exempt SUs not reported to Eurocontrol 745 1,779 (1,034) -58.1%
Total for chg Zone
Chg. Zone 1 166,856 173,569 (6,713) -3.9%
Chg. Zone 2 238,846 228,953 9,893 4.3%
Chg. Zone 3 316,188 301,731 14,457 4.8%
Total 721,890 704,253 17,637 2.5%

In overall terms, the results for the third quarter of 2017, compared with the corresponding period of the
previous financial year, show a negative trend in the first charging zone and a positive trend in the second
and third charging zones in terms of service units. In particular:
 charging zone 1, which refers exclusively to Rome Fiumicino Airport, which stands at -3.9% in terms of
service units and -5.1% for assisted flights, suffered especially from the Alitalia situation which recorded
a -4.1% reduction in SUs and -6.8% in assisted flights in the first nine months of 2017. If one considers
that Alitalia represents about 42% of the SUs developed during the period at the main Rome airport;
 charging zone 2, which refers to Milano Malpensa, Milano Linate, Venezia Tessera and Bergamo Orio al
Serio, shows an increase both in SUs (+4.3%) and assisted flights (+4.1%) mainly due to the good results
achieved by the airports of Milano Malpensa (+6.8% SUs; +7.4% no. of flights) and Bergamo Orio al Serio
(+7.1% SUs; +8% no. of flights). The impact associated with the situation of the Italian national carrier is
lower in this zone, since it represents only 12.7% of the SUs. Note, however, in the period in question,
Alitalia recorded a fall of -6.8% in SUs in this zone.

Enav Group - Interim Financial Report at 30 September 2017 9

 charging zone 3 is up in terms of SUs (+4.8%) compared with the reduction in the number of assisted
flights (-2.1%). This latter result depends on the reduction recorded by the item "Exempt flights not
reported to Eurocontrol" (-65.6%), which, in any event, produce a marginal number of SUs. Therefore,
removing the effect of the reduction of exempt flights, the figure for flights in the third charging zone
would have been +3.4%, in line with the result recorded by service units. Conversely, with regard to
Alitalia, there has been a -3.8% decrease in SUs compared with the same period in 2016. As with the
charging zone 2, the impact is, in any case, limited considering that Alitalia’s share compared with all the
SUs in zone 3 is about 14.7%. In this charging zone, note the good performance of Naples airport (+17.4%
SUs), Catania (+13.7% SUs), Cagliari (+10.2% SUs), Turin (+5.4% SUs) and Palermo (2.6%).
Regarding the various traffic category items, as already demonstrated for the en-route traffic, international
traffic is the main component, with an increase of +3.7% in SUs and +3.8% in the number of assisted flights.
This increase is specifically attributable to the results achieved by the airports in charging zones 2 and 3.
The domestic traffic item, highlights a 0.9% increase in service units and a 0.2% rise in assisted flights. This
traffic item was affected by the negative performance of air traffic on the first charging zone.

Effects of seasonality
The type of business in which the Parent Company operates is affected by the uneven trend of revenues
throughout the whole year. Air traffic is, by its very nature, heavily influenced by seasonal factors. As for any
activity linked to tourism, passenger traffic increases in the seasons of the year when Italian and foreign
passengers typically travel more.
Specifically, revenue performance, which is closely connected to air traffic volumes, is not uniform
throughout the year and reach the peak in the summer months in particular. Consequently, the Group's
interim results, as already shown in the first quarter and in the half-year report, do not contribute evenly to
the economic and financial results for the year.

Group economic and financial performance

Definition of alternative performance indicators
In addition to the financial data required by the IFRS and in line with the guidelines no. 2015/1415 issued on
5 October 2015 by the European Securities and Markets Authority (ESMA) which, as notified by Consob in
Communication no. 92543 of 3 December 2015 and starting from 3 July 2016, replace Recommendation
CESR/05-178b issued by the Committee of European Securities Regulators, Enav presents certain indicators
derived from the former data which provide management with an additional parameter for evaluating the

Enav Group - Interim Financial Report at 30 September 2017 10

performance achieved by the Group to ensure greater comparability, reliability and understanding of the
financial information.
The alternative performance indicators used in this document are as follows:
 EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortisation): is an indicator of profit before
the effects of financial management and taxation, as well as depreciation, amortisation and write-downs
on tangible and intangible assets and receivables and provisions, adjusted for investment subsidies
directly related to the investments in depreciation and amortisation to which they refer;
 EBITDA margin: is EBITDA expressed as a percentage of total revenues and adjusted for investment
subsidies as specified above;
 EBIT (Earnings Before Interest and Taxes): is EBITDA less depreciation and amortisation adjusted for
investment subsidies and write-downs of tangible and intangible assets and receivables and provisions;
 EBIT margin: is EBIT expressed as a percentage of total revenues less investment subsidies as specified
above;
 Net fixed capital: is a capital parameter which is equal to the net fixed capital employed in business
operations and includes items relating to tangible assets, intangible assets, investment in other
companies, non-current trade receivables and payables, and other non-current assets and liabilities;
 Net working capital: is the capital employed in business operations which includes the line items
inventory, trade receivables, and other non-financial current assets, net of trade payables and other
current liabilities excluding those of a financial nature, plus assets held for disposal net of related
liabilities;
 Gross net fixed capital: is the sum of Net fixed capital and Net working capital;
 Net invested capital: is the sum of the Gross net fixed capital, less the employee severance indemnity
and other benefits, the provision for risks and charges and the deferred tax assets net of liabilities;
 Net financial indebtedness: is the sum of the current and non-current financial liabilities, current and
non-current financial receivables net of non-current financial liabilities referred to the fair value of the
derivative financial instruments and cash and cash equivalents;
 Free cash flow: is the sum of the cash flow generated or absorbed from operating activities and the cash
flow generated or absorbed from investing activities.

The reclassified consolidated income statement, statement of financial position and statement of cash flows,
the consolidated statement of net financial indebtedness and the alternative performance indicators used
by management to monitor performance are shown below.

Enav Group - Interim Financial Report at 30 September 2017 11

Reclassified consolidated income statement

Variations
3rd quarter 2017 3rd quarter 2016
Values %
Revenues from operations 669,345 626,388 42,957 6.9%
Balance (21,786) 10,094 (31,880) -315.8%
Other operating income 25,429 25,623 (194) -0.8%
Total revenues 672,988 662,105 10,883 1.6%
Personnel costs (354,188) (354,164) (24) 0.0%
Capitalisation of internal work 20,396 20,315 81 0.4%
Other operating costs (108,734) (120,237) 11,503 -9.6%
Total operating costs (442,526) (454,086) 11,560 -2.5%
EBITDA 230,462 208,019 22,443 10.8%
EBITDA margin 34.2% 31.4% 2.8% 9.0%
Net amortisation of investment contributions (96,540) (100,113) 3,573 -3.6%
Write-downs, losses (write-backs) of value and provisions (4,912) (447) (4,465) 998.9%
EBIT 129,010 107,459 21,551 20.1%
EBIT margin 19.2% 16.2% 2.9% 18.1%
Financial income (expenses) (1,559) (2,630) 1,071 -40.7%
Pre-tax income 127,451 104,829 22,622 21.6%
Income taxes for the period (37,812) (34,393) (3,419) 9.9%
Profit/(loss) for the period 89,639 70,436 19,203 27.3%
Value in thousands of Euro

Analysis of revenue
Revenues from operations stood at €669.3 million, up 6.9% compared with the corresponding period of the
previous year, comprising €658.7 million in revenue from the parent company’s core business (+6.7% in the
third quarter of 2016) and €10.6 million from business conducted by the Group in the non-regulated market
(up +18.5% in the third quarter of 2016).

3rd quarter 2017 3rd quarter 2016 Variations %

En Route revenues 478,511 456,470 22,041 4.8%
Terminal revenues 169,765 150,975 18,790 12.4%
En Route and terminal exemptions 10,425 9,961 464 4.7%
Revenues from non-regulated market 10,644 8,982 1,662 18.5%
Total revenues from operations 669,345 626,388 42,957 6.9%
Value in thousands of Euro

En-route revenues totalled €478.5 million, an increase of 4.8% compared with the corresponding period of
the previous year, on account of the higher service units in the period which affected both domestic and
international and overflight traffic by +3.4% in total compared with the third quarter of 2016. This was in the

Enav Group - Interim Financial Report at 30 September 2017 12

context of charges applied which were essentially unchanged compared with 2016 standing at €80.00 (€80.08
in 2016).
Terminal revenues amounted to €169.8 million and recorded an increase of 12.4% compared with the
corresponding period in the previous year, following the differing trend of the service units developed at
individual airports classified by different charging zone, which overall stood at +2.7%, with a negative
performance for the first charging zone and a positive performance for the other two zones, and also the
charge applied.
Specifically, the first charging zone, which refers to Rome Fiumicino Airport, recorded lower traffic managed,
expressed in service units, of -3.9% compared with the third quarter of 2016, an airport which suffers greatly
from the difficulties which Alitalia finds itself in. Added to this effect is the 6% of charge reduction in 2017
which determined a charge of €188.57 compared with €200.68 in 2016. The second charging zone, which
refers to the airports Milano Malpensa, Milano Linate, Venezia Tessera and Bergamo Orio al Serio, recorded
a good performance for managed air traffic which increased, in terms of service units, by 4.4% compared
with the corresponding period of the previous year, a performance which partly offset the lower revenue
deriving from a tariff reduction in 2017 of the 10%, with a charge of €209.95 compared with €233.33 in 2016.
The third charging zone, which includes 40 medium and low traffic airports, recorded an increase in managed
air traffic, expressed in service units, of +5.3% compared with the third quarter of 2016, and benefits from
both revenue from the airports of Comiso and Rimini, which came under the management of the Parent
Company with effect, respectively from September and November 2016, and the 24% tariff increase applied
in 2017 through a charge of €323.79 compared with 2016 when there was a contribution from the Ministry
of Economy and Finance of approximately €26 million which allowed a lower charge of €260.96 to be applied.
Revenue for en-route and terminal exemptions was €10.4 million, up 4.7% compared with the third quarter
of 2016 due to higher service units for exempt flights for en-route traffic.
Revenue from the non-regulated market stood at €10.6 million, with an overall increase of 18.5% equal to
€1.7 million compared with the corresponding period of the previous year, a change which would have stood
at +33.4% if the €1 million for the third quarter of 2016 resulting from the effect of the acknowledgement
and settlement agreement signed by the subsidiary Techno Sky and Leonardo S.p.A., following the arbitration
proceedings which concluded in May 2016, was excluded. Revenue from the non-regulated market changed
according to the type of service provided in the period with an increase in revenue for services provided
abroad including: i) in the United Arab Emirates, for the restructuring of the airspace which generated
revenue of €2.6 million; ii) in Libya, both for the construction of the control tower and the technical area of
the Mitiga airport and for the training of 60 Libyan air traffic controllers, with total revenue of €1.1 million;
iii) in Morocco, for the instrument flight procedures research and the restructuring of the air space, with
revenue of €0.7 million. These activities made it possible to offset the reduction in revenue for Air Traffic

Enav Group - Interim Financial Report at 30 September 2017 13

Services provided by the Parent Company through direct contracts including those which refer to the airport
of Comiso, charged from September 2016 and previously managed under a direct agreement and for tower
services for the airport of Crotone following the end of the temporary exercising at the end of October 2016
and as a result of the closure of the airport.

The balance charge adjustments, also part of the Parent Company’s operations, totalled -€21.8 million and
were calculated on the basis of the items listed in the following table:
3rd quarter 2017 3rd quarter 2016 Variations
Balance charge adjustments for the period (3,787) 21,759 (25,546)
Discounting effect 64 (419) 483
Balance changes (2) (185) 183
Balance utilisation (18,061) (11,061) (7,000)
Total balance (21,786) 10,094 (31,880)
Value in thousands of Euro

The balance charge adjustments item for the period, equal to -€3.8 million, a total fall of €25.5 million
compared with the third quarter of 2016, includes €10 million for en-route balances and is negative by €13.8
million for terminal balances. Specifically, route balances refer mainly to traffic risk and the portion not
recovered of balances recorded in previous years and incorporated in the 2017 charge in the amount of €18.8
million in total (€14.8 million in the third quarter of 2016), following the lower service units generated at the
end of September 2017 compared with the performance plan figures (-6.7%) and the inflation balance of -
€9.6 million, in line with the third quarter of 2016. The terminal balances include: i) a positive balance for the
first charging zone totalling €0.3 million (negative by €0.7 million in the third quarter of 2016), the net effect
between the positive balance for traffic risk (-5.8% in terms of service units compared with the performance
plan figures) and the negative balance for inflation; ii) a negative balance for the second charging zone
totalling €2.9 million linked to both traffic (+4% compared with the projected figures) and inflation; iii) a
balance reimbursed for the third charging zone, created by a cost recovery logic, equal to -€11.2 million as a
result of the effect of greater traffic in the period and lower costs incurred. The overall variation of the
balance charge adjustments for the period is mainly due to the balance for the third charging zone which in
the corresponding previous period was positive by €18.7 million as a lower charge was applied while awaiting
the contribution from the Ministry of Economy and Finance.
The balance utilisation of €18.1 million refers to the charge repayment and therefore to the income
statement for the portion of en-route and terminal balances recorded in previous years.

Other operating income of €25.4 million, essentially in line with the third quarter of 2016, mainly includes
the contribution recognized to the Parent Company pursuant to Article 11-septies of Law 248/05, in order to
offset for the costs incurred to ensure the safety of facilities and operational safety in the amount of €22.5
million in the period.
Enav Group - Interim Financial Report at 30 September 2017 14
Cost trends
Variations
3rd quarter 2017 3rd quarter 2016 Values %
Personnel costs (354,188) (354,164) (24) 0.0%
Capitalisation of internal work 20,396 20,315 81 0.4%
Other operating costs (108,734) (120,237) 11,503 -9.6%
Total operating costs (442,526) (454,086) 11,560 -2.5%
Value in thousands of Euro

Operating costs totalled €442.5 million, a decrease of 2.5% compared with the corresponding period of the
previous year and consist of personnel costs of €354.2 million, other operating costs of €108.7 million and
capitalisation of internal work which generated a positive effect of €20.4 million.
3rd quarter 2017 3rd quarter 2016 Variations %
Wages and salaries, of which:
fixed remuneration 205,435 204,836 599 0.3%
variable remuneration 45,393 44,469 924 2.1%
Total wages and salaries 250,828 249,305 1,523 0.6%
Social security contributions 82,240 82,924 (684) -0.8%
Employee severance indemnity 15,941 16,013 (72) -0.4%
Other costs 5,179 5,922 (743) -12.5%
Total personnel costs 354,188 354,164 24 0.0%
Value in thousands of Euro

The balance of personnel costs was in line with the final figures in the third quarter of 2016, standing at
€354.2 million. The performance of the various cost items changed, specifically with a 0.6% increase in wages
and salaries due in part to the fixed remuneration which contains a valuation of the possible effects of the
renewal of the contract which expired at the end of 2016, effects which were largely offset by the lower costs
generated by the reduction in the Group headcount corresponding to 42 average units, compared with the
corresponding period of the previous year, and 76 actual units, with a headcount at the end of the third
quarter of 2017 of 4,251 units (4,327 units in the third quarter of 2016). Variable remuneration recorded an
overall increase of 2.1% mainly related to overtime connected to the training of Air Traffic Controllers for the
implementation of the free route platform project which involved the Parent Company's operating staff
starting from the last months of 2016, and the need to employ a larger number of resources in July and
August to deal with the increase in recorded traffic. Social security contributions declined by 0.8% following
the reaching of the pension contribution ceiling, while other personnel costs fell by 12.5% in part with
reference to the early retirement incentive paid to employees leaving in the period in question which
amounted to €1.7 million (€2.1 million in the third quarter of 2016).

Enav Group - Interim Financial Report at 30 September 2017 15

Other operating costs stood at €108.7 million, a fall of 9.6% compared with the corresponding period of the
previous year, equal to €11.5 million; a greater change compared with the reduction linked to costs incurred
for the privatisation process which in the third quarter of 2016 weighed in at €7.4 million.
3rd quarter 2017 3rd quarter 2016 Variations %

Costs for the purchase of goods 5,653 6,150 (497) -8.1%

Costs for services:
Maintenance costs 14,756 15,589 (833) -5.3%
Costs for Eurocontrol contributions 28,029 30,995 (2,966) -9.6%
Costs for utilities and telecommunications 27,087 26,782 305 1.1%
Costs for insurance 2,034 4,467 (2,433) -54.5%
Cleaning and security 3,651 3,965 (314) -7.9%
Other personnel-related costs 7,159 7,285 (126) -1.7%
Professional services 7,566 7,891 (325) -4.1%
Other costs for services 4,832 9,933 (5,101) -51.4%
Total costs for services 95,114 106,907 (11,793) -11.0%
Costs for the use of third-party assets 4,301 4,512 (211) -4.7%
Other operating expenses 3,666 2,668 998 37.4%
Total 108,734 120,237 (11,503) -9.6%
Value in thousands of Euro

In the break-down of the individual items note a widespread reduction in the various cost items including
those for the purchase of goods, which mainly includes the costs incurred for the purchase of replacement
parts relating to equipment and apparatus used for air traffic control, which fell on account of the fewer
purchases in the period and costs for services. The latter recorded a total net decrease of 11% connected to
the lower Eurocontrol contribution costs, the reduction in insurance costs which benefited from the saving
associated with the new contracts concluded which ran from 1 July 2016, the lower costs for professional
services which in the third quarter of 2016 included part of the costs associated with the privatisation process
while the third quarter in question includes costs, not incurred previously, which refer both to costs
supporting the new projects abroad and costs incurred in relation to the new status as a listed company, as
well as costs for radio frequency utilisation in non-aeronautical bands. Other costs for services fell by €5.1
million because the third quarter of 2016 included the advertising costs for the privatisation.

Enav Group - Interim Financial Report at 30 September 2017 16

Margins
These amounts had a positive effect in the calculation of the EBITDA, generating an increase of 10.8%
compared with the third quarter of 2016 and reaching €230.5 million with an EBITDA margin up 34.2% (31.4%
in the third quarter 2016).
EBIT was €129 million, up €21.5 million on the corresponding period of the previous year when it stood at
€107.5 million. Amortisation and depreciation affected this result by €96.5 million, a fall of €3.6 million
compared with the third quarter of 2016, partly offset by the effect of the write-down of receivables in the
period in order to take into account the situation of Alitalia which went into extraordinary administration
through the order of 2 May 2017. The EBIT margin in the third quarter of 2017 was 19.2%, an improvement
compared with the corresponding period of the previous year when it stood at 16.2%.

Financial management
Financial income and expenses had a negative value of €1.6 million, recording an improvement compared
with the third quarter of 2016 of €1 million, mainly due to the growth of financial income.

3rd quarter 2017 3rd quarter 2016 Variations

Income from investments in other companies 417 250 167

Financial income from balance discounting 2,060 487 1,573

Financial income from non-current financial assets 0 0 0
Interest income on VAT credit refunds 19 356 (337)
Other interest income 1,230 1,443 (213)
Total financial income 3,726 2,536 1,190
Value in thousands of Euro

3rd quarter 2017 3rd quarter 2016 Variations

Interest due on bank loans 1,554 1,555 (1)

Interest due on bonds 2,602 2,601 1
Interest due on employee severance indemnity 543 722 (179)
Other interest due 148 304 (156)
Total financial expenses 4,847 5,182 (335)
Profit/(loss) on foreing exchange (438) 16 (454)
Total financial income and expenses (1,559) (2,630) 1,071
Value in thousands of Euro

The increase in financial income of €1.2 million compared with the corresponding period of the previous year
refers mainly to the income from the balance discounting, which only includes the portion of balance
receivables attributable to the quarter, but also the allocation to the income statement of the discounting of
part of the receivables for the balance of the third charging zone, following the termination of the receivables

Enav Group - Interim Financial Report at 30 September 2017 17

implemented in compliance with Decree Law 50 of 24 April 2017 converted through Law 96 pursuant to
Article 51 which recognized to the Parent Company €26 million for curbing the terminal third charging zone
increases set out in the 2016-2019 programme contract.
Financial expenses fell by €0.3 million both through lower interest costs on employee severance indemnity
in the period and through lower financial expenses recorded in the third quarter of 2017 by the subsidiary
Techno Sky following the conclusion of the arbitration proceedings at the end of the 2016 half-year where
interest legal rate was applied to the credit and debit entries frozen in the arbitration award.

Result for the period

Income taxes for the period were negative by €37.8 million, up by €3.4 million compared with the third
quarter of 2016, following the higher tax base, although the result for the period benefits from the lower
current taxes following the reduction of the IRES rate from 27.5% to 24%. The profit for the period, as a result
of the above, stands at €89.6 million, a 27.3% improvement compared with the corresponding period of the
previous year when it stood at €70.4 million.

Reclassified consolidated statement of financial position

30.09.2017 31.12.2016 Variations

Tangible assets 1,026,865 1,056,281 (29,416)

Intangible assets 123,977 123,084 893
Investments in other companies 52,025 36,468 15,557
Non-current trade receivables and payables 67,381 136,770 (69,389)
Other non-current assets and liabilities (70,705) (73,036) 2,331
Net fixed capital 1,199,543 1,279,567 (80,024)
Inventories 60,749 60,895 (146)
Trade receivables 366,193 226,651 139,542
Trade payables (124,622) (132,512) 7,890
Other current assets and liabilities (189,764) (166,459) (23,305)
Assets held for disposal net of related liabilities (275) 13 (288)
Net working capital 112,281 (11,412) 123,693
Gross net fixed capital 1,311,824 1,268,155 43,669
Employee severance indemnity and other benefits (54,988) (57,388) 2,400
Provisions for risks and charges (10,417) (11,029) 612
Deferred tax assets net of liabilities 20,156 20,209 (53)

Net invested capital 1,266,575 1,219,947 46,628

Shareholders' equity 1,109,200 1,119,826 (10,626)
Net Financial Indebtedness 157,375 100,121 57,254
Total coverage sources 1,266,575 1,219,947 46,628
Value in thousand of Euro

Enav Group - Interim Financial Report at 30 September 2017 18

Net invested capital was €1,266.6 million, up by €46.6 million compared with 31 December 2016 resulting
from changes in the following items.

Net fixed capital

Net fixed capital of €1,199.5 million decreased by €80 million as at 30 September 2017 compared with 31
December 2016, because of: i) the decrease in tangible assets of €29.4 million, mainly the result of
depreciation higher than the investments made during the period; ii) an increase of €15.6 million in the item
investment in other companies resulting from the payment by Enav North Atlantic of the third and fourth
instalments for the acquisition of the interest in Aireon of $22.9 million, which took its stake up to 10.07%;
iii) the net reduction in non-current trade receivables and payables, which refer exclusively to the balances
of €69.4 million, being the net effect of the recognition of the balances for the period of -€3.8 million, the
cancellation of €26 million of terminal balances of the third charging zone recorded in previous years and
recognised by the Ministry of Economy and Finance through Article 51 of Legislative Decree 50/2017,
reducing the payable recognised for the same period of 2014 and the reclassification of current balance trade
receivables and trade payables which will be included in the 2018 charge.

Net working capital

Net working capital was €112.3 million, up by €123.7 million compared with 31 December 2016. The main
changes involved: i) the €139.5 million increase in trade receivables which refers €91.2 million to Eurocontrol
following increased traffic in the last two months of the third quarter of 2017, and therefore relates to not-
past due positions and to the two months’ revenue from Alitalia not collected; the receivable from the
Ministry of Infrastructure and Transport for the safety contribution which provides €22.5 million and the
balance receivable of €31 million mainly for the allocation in the current portion of balances which will be
included in the 2018 charge. These increases were reduced by €4.7 million following the prudential write-
down of receivables made in the period and which refer to Alitalia and an airport management company; ii)
the €7.9 million decrease in trade payables following the higher payments to suppliers of €19 million, an
effect offset by the increase in balance payables following the reclassification in the current portion of part
of the balances which will be included in the 2018 charge and the collection of the pre-financing obtained for
the Connecting Europe Facility (CEF) project 2015 call first cluster 2015 -2018 for approximately €6 million;
iii) the change in other current assets and liabilities creating a net effect of greater debt of €23.3 million
relating to tax payables of €12.6 million following IRES in the period; greater payables to the Italian Air Force
of €28.2 million for the portion pertaining to the collection of en-route and terminal receivables recognized
in the period net of payments made; a reduction in payables to the Ministry of Economy and Finance of €26
million following the effects associated with Legislative Decree 50 of 24 April 2017; a decrease in tax

Enav Group - Interim Financial Report at 30 September 2017 19

receivables of €11.4 million mainly through the collection of the VAT receivable for 2016 for which a refund
was requested in February 2017 and collected for a total of €13.6 million.
When calculating net invested capital the employee severance indemnity, negative by €55 million also had
an impact, recording a positive change in the period of €2.4 million both in payments and advances made
during the period and the actuarial gain recorded at 30 September 2017, as well as provisions for risks and
charges of €10.4 million and deferred tax asset and liabilities for a positive net amount of €20.2 million.

Shareholders’ Equity
Shareholders' equity stood at €1,109.2 million recording a net decrease of €10.6 million compared with 31
December 2016 mainly following the profit recorded at 30 September 2017 of €89.6 million and the falls in
shareholders' equity following the payment of the €95.3 million dividend and the negative effect of the
translation reserve of the financial statements in foreign currency which had a negative impact of €4.9
million.

Net financial indebtedness

Net financial indebtedness amounted to €157.4 million, an increase of €57.3 million compared with 31
December 2016, as shown in the following table.
30.09.2017 31.12.2016 Variations
Cash and cash equivalents 158,594 231,007 (72,413)
Current financial receivables 0 1,221 (1,221)
Current financial debt (32,258) (32,622) 364
Net current financial position 126,336 199,606 (73,270)
Non-current financial receivables 283 0 283
Non-current financial liabilities 0 (104) 104
Non-current financial debt (283,994) (299,623) 15,629
Non-current financial indebtedness (283,711) (299,727) 16,016
Net financial indebtedness (157,375) (100,121) (57,254)
Value in thousands of Euro

There was a negative change in net financial indebtedness as at 30 September 2017 of €57.3 million
compared with 31 December 2016, relating mainly to the payment of the €95.3 million dividend made in
May and the payment of the third and fourth instalments of the purchase price for the stake in Aireon of
approximately $22.9 million. These effects were offset by the ordinary operations which produced a positive
cash flow, as described below. Non-current financial debt fell by €15.6 million on account of the repayment
of the half-year instalments on medium-term loans.

Enav Group - Interim Financial Report at 30 September 2017 20

Structure of the consolidated net financial indebtedness

30.09.2017 31.12.2016
(A) Cash 158,594 231,007
(B) Other cash equivalents 0 0
(C) Trading Securities 0 0
(D) Liquidity (A)+(B)+(C) 158,594 231,007
(E) Current financial receivables 0 0
(F) Current financial payables 0 0
(G) Current portion of non-current indebtedness (32,258) (32,622)
(H) Other current financial debt 0 0
(I) Current financial indebtness (F)+(G)+(H) (32,258) (32,622)
(J) Net current financial indebtedness/Liquidity (D)+(E)+(I) 126,336 198,385
(K) Non-current bank loans (103,994) (119,623)
(L) Bonds issued (180,000) (180,000)
(M) Other non-current loans 0 0
(N) Non-current financial indebtedness (K)+(L)+(M) (283,994) (299,623)
(O) CONSOB Net Financial Indebtedness (J)+(N) (157,658) (101,238)
(P) Current and non-current derivatives instruments 283 1,117
(Q) ENAV Group Net Financial Indebtedness (O)+(P) (157,375) (100,121)
Value in thousand of Euro

Consolidated statement of cash flows

30.09.2017 30.09.2016 Variations

Cash flow generated/(absorbed) from operating activities 137,748 150,053 (12,305)
Cash flow generated/(absorbed) from investing activities (99,241) (63,246) (35,995)
Cash flow generated/(absorbed) from financing activities (111,285) (61,148) (50,137)
Cash flow for the period (72,778) 25,659 (98,437)

Cash and cash equivalents at the beginning of the period 231,811 174,141 57,670
Exchange rate differences on cash 104 (379) 483
Cash and cash equivalents at the end of the period (*) 159,137 199,421 (40,284)
Free cash flow 38,507 86,807 (48,300)
Value in thousands of Euro
(*) Cash and cash equivalent at the end of the period includes for 543 thousands of euro the liquidity of the SICTA
Consortium in liquidation.

Enav Group - Interim Financial Report at 30 September 2017 21

Cash flow from operating activities
The cash flow from operating activities generated at 30 September 2017 stood at €137.7 million, down €12.3
million compared with the figure in the corresponding period of the previous year, following the not collected
receivables due from Alitalia of approximately €17 million, lower VAT collections of €13.6 million compared
with €40.5 million at 30 September 2016, the increase in the balance payables following the increase in the
period of negative balances totalling €24.4 million compared with €12.4 million in the corresponding previous
period, lower balance receivables recorded in the period of €13.5 million, greater receivables from the core
business, lower changes regarding the provision for risk and charges used in 2016 following the dispute of
the subsidiary Techno Sky to the tune of €5.2 million, effects partly offset by the greater profit for the period
of €19.2 million.

Cash flow from investing activities

The cash flow from investing activities at 30 September 2017 was negative by €99.2 million, up by €36 million
compared with the figure recorded at 30 September 2016, due to greater payments of €19.1 million to
suppliers associated with investment projects and for the payment of the third and fourth instalments of
€16.9 million as the purchase price for the investment in Aireon, which was not present as at 30 September
2016.

Cash flow from financing activities

The cash flow from financing activities absorbed total liquidity of €111.3 million recording a negative change
of €50.1 million compared with the corresponding period of the previous year mainly with reference to the
payment of the €95.3 million dividend, an increase of €48 million compared with 30 September 2016.

The free cash flow stood at €38.5 million thanks to the cash flow generated by activities in the period which
allowed to cover the cash flow absorbed by investing activities. In this regard, note that net of the investing
activities in Aireon which absorbed cash of €16.9 million, the free cash flow would have stood at €55.4 million
with a negative change of €31.4 million compared with the corresponding period of the previous period,
mainly on account of the not-collected receivables due from Alitalia, the lower collection of VAT receivables
and the higher payments made to suppliers for investment projects.

Enav Group - Interim Financial Report at 30 September 2017 22

Declaration of the Manager responsible for financial reporting pursuant to Article
154-bis paragraph 2 of Legislative Decree 58/1998

The undersigned Loredana Bottiglieri, as Manager responsible for financial reporting for Enav, pursuant to
Article 154-bis, paragraph 2 of Legislative Decree 58/1998 - Consolidated Finance Act, declares that the
accounting information in this Interim Financial Report at 30 September 2017 corresponds to that contained
in the accounting documentation, books and records.

Rome, 13 November 2017

Signed by Loredana Bottiglieri

Enav Group - Interim Financial Report at 30 September 2017 23

Legal information and contacts

Registered office
Enav S.p.A.
Via Salaria 716, 00138 Rome
Tel. +39 06 81661
www.enav.it

Legal information
Share capital: €541,744,385.00 fully paid-up
Tax Code and enrolment number in the Companies Register
of Rome: 97016000586
VAT Registration No. 02152021008

Investor Relations
email: ir@enav.it

Enav Group - Interim Financial Report at 30 September 2017 24